Which of the following quotations best describes purchasing power parity?

Question

Accepted Answer

"The prices of bananas in Canada and the United States are the same, after adjusting for the exchange rate."

Answer

"The expected depreciation of the Canadian dollar is currently lowering demand for it."

Answer

"The recent low Canadian interest rate has decreased demand for the Canadian dollar."

Answer

"In the foreign exchange market the Canadian dollar is overvalued and will likely depreciate."

Answer

"Goods purchased in Canada are cheaper than in the United States."

Crowdly